Tawarruq

What is Tawarruq? A Sharia’h compliant financing solution that is designed to provide you with liquid assets as per your needs.

There are two main stages of Tawarruq

Murabaha Stage: The bank and the obligor/customer enter into a commodity Murabaha contract that is governed by the Murabaha rules of the Shariah Supervisory Board. The customer will own either physically or constructively the assets subject of the Murabaha contract.

Asset liquidation stage: Customers can choose either to sell/liquidate the commodity directly in the market on his own or through an agency agreement through the bank

How does it work? Generally speaking, Tawarruq is allowed for those transactions that cannot be fulfilled through other Islamic Banking means/structures, such as: